Organization and planning of the supply process. Purchase department

Introduction

1. Economic essence and concept of supply

1.1 Procurement as one of the most important functions in a company

1.2 Functions of the logistics department in the company

2. Methods for determining a company’s need for necessary resources

2.1 Methods for determining needs for the quality and quantity of goods and services

2.2 MRP-1 methodology (material requirements planning)

2.3 Methods for calculating the need for basic materials

3. Ways to improve the organization of providing a company with resources for carrying out productive activities

3.1 Experience of foreign countries in improving the organization of providing a company with resources

3.2 Experience in using information systems for planning resource needs at domestic enterprises

Conclusion

List of used literature

Introduction

In the modern world, such an enterprise function as supply, which is implemented in the enterprise through the supply department, is of great importance in the production process.

Supply or as logistics is an integral part of the production management system. MTO ensures the quality of incoming resources at the entrance to the production process, which also determines the quality of the finished product at the exit from the system. Here we see a direct relationship between the state of incoming resources and the finished products produced.

The task of the logistics department is to provide production with the necessary material and technical resources in a timely manner in accordance with the production program and task. Resources arrive at the warehouse or immediately go into production.

Resources include the following elements: purchased raw materials (materials, water, fuel, energy), components, technological equipment, vehicles. In other words, material and technical resources include all resources that have a material form or are presented in the form of energy that go into the production of finished products.

Since logistics plays a significant role already at the pre-production stage, high-quality planning for supplying production with resources is accordingly necessary. MTO planning is carried out in a number of main areas: analysis of material consumption for production of products for a certain period, determination of their specific weights in the volume of finished products, degree of equipment utilization, forecasting the volumes of use of certain types of resources, drawing up material balances by type of resource, their sources and areas of use. The planning work presented is very labor-intensive. They are carried out by economists and planners with the participation of other specialists.

Recently, a sufficient number of methods for planning the requirements of material resources have been developed. Among them there are both traditional methods and new ones associated with the use of computer technology.

The purpose of our course work is to study the supply process (or logistics) at an enterprise.

To achieve this goal, we need to solve the following tasks:

Define the procurement process;

Consider the forms of logistics support at the enterprise;

Analyze the infrastructure and organizational structure of the logistics department;

Consider the main functions of the department;

Consider the basic methods for determining and calculating the needs for material resources;

Identify the features of using the MRP planning system;

Consider the experience of improving the organization of providing resources to a company, as well as the experience of using planning information systems at domestic enterprises.

1. Economic essence and concept of supply

1.1 Procurement as one of the most important functions in a company

The supply process is a set of operations that provide the enterprise with the necessary items and means of labor. The main task of the enterprise in organizing supply is timely, uninterrupted and comprehensive supply of production with all necessary material resources at minimal inventory management costs.

Supply at an enterprise in domestic practice is also identical to the concept of logistics. Logistics support (MTS) is a type of management activity to provide material and technical resources to the production process. Such activities are usually carried out before production begins. Providing logistics can be carried out both by specialized services at the enterprise itself, and by independent organizations for which such activity will be the main one. The main goal of logistics is to bring material resources to specific production enterprises at the place of consumption predetermined by the contract.

Industrial enterprises purchase material resources on the market for goods and services. To do this, you need to study market conditions, the capabilities of potential suppliers, and information on price movements. The necessary resources are purchased by the enterprise directly from manufacturers, in wholesale trade, including at fairs, auctions and from wholesale sales organizations of material and technical resources, as well as from other intermediary organizations. Such intermediary organizations are, for example, commodity exchanges, which are commercial enterprises that sell homogeneous goods with certain characteristics. Commodity exchanges operate in Moscow, St. Petersburg, Yekaterinburg, Voronezh and other cities of the country.

Depending on the supply system and the characteristics of the movement of material resources from suppliers to consumers, transit and warehouse forms of material and technical support are distinguished.

The essence of the transit form is that the supplier of material resources for the enterprise is directly the enterprises themselves that extract, process or produce them.

The transit form occupies a significant part of the total volume of supplies, it is more economical, and the delivery speed is relatively high. The choice of a transit form of supply is dictated primarily by the volume of resources consumed and the transit or custom form of supply established for it. The transit norm is defined as the minimum permissible total quantity of materials that is shipped by the manufacturer to the consumer under one order. The order norm, in turn, is defined as the smallest quantity of materials for one order item accepted by the manufacturer for execution in the event of a mandatory order for the simultaneous delivery of several homogeneous types (standard sizes) of materials to one consumer.

The essence of the warehouse form of supply is that the supplier of material resources for the enterprise are various supply, intermediary, wholesale, and retail enterprises.

The warehouse form is characterized by a greater frequency of deliveries of the required batches of materials. The warehouse form contributes to a relative reduction in inventory and ensures completeness of supplies. However, this form of supply is characterized by additional costs associated with warehouse operations for loading, unloading and storing materials.

Logistics and technical support for enterprises is aimed at reducing production costs and creating conditions for an uninterrupted production process. It provides:

Maintaining inventories at the enterprise at an optimal level;

Delivery of materials to each workplace.

The logistics infrastructure includes warehouse, transport and procurement departments. Individual enterprises may also have divisions for processing industrial waste and packaging waste.

Warehousing is the main structural unit of the logistics service of an enterprise. Its own organizational structure is established depending on the production structure of the enterprise itself. Therefore, the composition of the warehouse facility can be represented by a network of general plant warehouses or warehouses of individual production facilities, a network of workshop warehouses and storage areas in large specialized areas.

According to the functions they perform, warehouses at industrial enterprises can be material, production, sales and other specialized warehouses.

Material warehouses, or logistics warehouses, are mainly designed to carry out warehouse operations with all incoming material and technical resources (raw materials, materials, semi-finished products, components, etc.).

Industrial warehouses are intended for carrying out warehouse operations with materials of own production (placement of own equipment and tools).

Sales warehouses are designed to house finished products of the enterprise.

Other specialized warehouses at the enterprise are designed to carry out warehouse operations with special-purpose materials.

General plant warehouses can also be divided by level of specialization. For special materials, mainly for one purpose, specialized warehouses are created, for multi-product materials - universal ones.

Warehouses can be designed for racking and stacking of materials or a combination of both. According to their structure, warehouses can be divided into closed, open areas and sheds (semi-closed).

In general, the structure of warehousing at industrial enterprises is determined by:

The industrial nature of production;

The scale and size of the enterprise;

Scale and type of production;

Organization of production and management.

The structure of logistics warehouses at industrial enterprises is also characterized by the range of stored materials, volumes, functional purpose, consumer properties and features of their industrial consumption.

To perform technological functions of pre-processing materials, procuring and preparing products for production consumption at industrial enterprises, a procurement facility is created, which is included in the organizational structure of the enterprise's logistics service.

Thus, the logistics of an enterprise with material resources includes the following functions:

Procurement and delivery of materials;

Warehousing and ensuring their safety;

Processing and preparation of materials for industrial use;

MTO management.

There are three forms of organization of logistics management:

The centralized management system provides for the concentration of functions within a single logistics service, which is determined by the territorial integrity of the enterprise, the production unity of the enterprise and a relatively narrow range of consumed materials;

A decentralized management system provides for the dispersal of functions, which is due to the territorial disunity of the enterprise, the production independence of divisions and a relatively wide range of materials;

A mixed logistics system combines both of the above structures.

1.2 Functions of the logistics department in the company

The main goal of logistics is to bring material resources to specific production enterprises at the place of consumption predetermined by the contract.

MTO functions are classified into main and auxiliary, which in turn are divided into commercial and technological.

The main commercial functions include the direct purchase and rental of material resources by industrial enterprises, accompanied by a change in the form of value.

Supporting commercial functions - marketing and legal. Marketing functions of a commercial nature include issues of identifying and selecting specific suppliers of material resources. In some cases, intermediary structures may act as suppliers.

Legal functions are related to legal support and protection of property rights, preparation and conduct of business negotiations and legal registration of transactions and control over their execution.

Technological functions include issues of delivery and storage of material resources. This is preceded by a number of auxiliary functions for unpacking, depreservation, preparation and pre-processing.

A number of economists also distinguish between external and internal functions.

External functions are implemented outside the enterprise in relationships with suppliers, wholesalers, retail, trade, and transport organizations. The main external functions include:

Analysis of the market for suppliers of material and technical resources in order to select the optimal counterparty with the subsequent conclusion of contracts;

Creation of economic relationships in the field of supply of resources based on the principle of rationality;

Justification of the method for choosing means of delivering resources to an enterprise, analysis of transport companies in order to select the most suitable one.

Internal functions are implemented directly within the enterprise and are manifested in the relationship between the logistics department and the administration of the enterprise, as well as with other production units of the enterprise. The main internal functions include:

Development of a material balance or supply plan;

Distribution of incoming material and technical resources among various departments according to production plans and assignments;

Development of limits for the release of materials into production;

Technical preparation of materials for release into production;

Organization of the optimal flow of material resources at the enterprise, its regulation and control over its movement.

Specifying the listed functions, the following main areas of activity of the logistics department can be noted:

1) conducting market research of suppliers for specific types of resources. It is recommended to select suppliers based on the following requirements: the supplier has a license and sufficient experience in this field; high organizational and technical level of production; reliability and profitability of work; ensuring the competitiveness of manufactured goods; their acceptable (optimal) price; simplicity of the scheme and stability of supply;

2) rationing the need for specific types of resources;

3) development of organizational and technical measures to reduce norms and standards for resource consumption;

4) search for channels and forms of material and technical support for production;

5) development of material balances;

6) planning the material and technical support of production with resources;

7) organization of delivery, storage and preparation of resources for production;

8) organizing the provision of resources for workplaces;

9) accounting and control of resource use;

10)organization of collection and processing of production waste;

11) analysis of the efficiency of resource use;

12)stimulating improved use of resources.

We have already said that the supply process at an enterprise is carried out by the supply department or logistics department. We briefly examined possible organizational aspects of the formation of a supply service at an enterprise. It should also be noted that in order to organize high-quality management of the movement of material flow, highly qualified specialists must work in the department. This requirement is due to the fact that the implementation of supply functions is complex and requires knowledge in various areas of logistics, marketing, economics of production organization, rationing skills, forecasting, etc.

2. Methods for determining a company’s need for necessary resources

2.1 Methods for determining needs for the quality and quantity of goods and services

Determining material requirements is one of the most important activities performed in the production material planning process. The size and type of needs serve as the basis for choosing the conditions for the delivery of materials, for example, in accordance with the rhythm of consumption, the production cycle of the product, etc. Possible fluctuations in needs and delivery times necessitate continuous monitoring of the level of inventories.

A necessary condition for solving the problems of determining the requirements for materials is the choice of a method for their calculation and the establishment of the type of requirement.

The need for raw materials and materials is understood as their quantity required by a certain date for a specified period to ensure the implementation of a given production program or existing orders.

Since in most cases the need for materials is linked to a certain period, we speak of a periodic need.

Periodic demand consists of primary and secondary.

Primary need. Primary refers to the need for finished products, assemblies and parts intended for sale, as well as purchased spare parts. Calculation of primary needs, as a rule, is carried out using methods of mathematical statistics and forecasting, giving the expected need. In order to avoid strict dependence on delivery times and insure itself against losses, the company strives to reuse the same parts and assemblies by unifying manufactured products and creating their reserves. The risk of misestimating or inaccurately forecasting needs is offset by a corresponding increase in safety stocks. The more reliable the forecast, the lower the required inventory level.

The established primary need is the basis for managing material flows in enterprises operating in the trade sector.

When calculating secondary needs are assumed to be given: primary need, including information about volumes and timing; specifications or applicability information; possible additional supplies; the amount of materials at the disposal of the enterprise. Therefore, to determine secondary demand, as a rule, deterministic calculation methods are used. If this method of establishing the need is not possible due to the lack of specifications or the insignificant need for materials, then it is predicted using data on the consumption of raw materials and supplies.

Tertiary need. The production need for auxiliary materials and wearing tools is called tertiary. It can be determined on the basis of secondary indicators of the use of materials (deterministic determination of need), by carrying out stochastic calculations based on the consumption of available materials, or by expert means.

Gross and net needs. Gross demand refers to the need for materials for the planning period, without taking into account whether they are in stock or in production. Accordingly, net demand characterizes the need for materials for the planning period, taking into account their available stocks and is obtained as the difference between gross demand and available warehouse stocks by a certain date.

In practice, the total demand for materials increases relative to the gross indication by additional demand due to defects in production and maintenance and repair of equipment. After comparison with the amount of available warehouse stocks, the residual requirement is adjusted to the amount of current orders.

In the practice of enterprises, several methods are used to supply production with materials: custom-made, based on planned tasks, based on the fulfilled need.

Custom method can be considered as one of the ways to materially support production based on planned targets and orders. A distinctive feature of the order-based supply method is the “instant transformation” of the emerging need into an order, which under normal conditions leads to a lack of inventory. Therefore, calculation of net requirements is not provided.

Ensuring production based on current consumption is based on initial data on the consumption of materials for past periods of time and characterizes the expected, predicted need for them.

Material support based on planned targets. This method is based on a deterministic calculation of material requirements. In this case, it is assumed that the primary need for a certain period, the structure of products in the form of specifications, which makes it possible to determine the secondary need, and possible additional need, are known.

When providing materials based on planned assignments, the order size is determined based on the net requirement, taking into account the planned receipt and availability of materials in the warehouse.

Material support based on actual consumption. The purpose of this method of material support is the timely replenishment of inventories and maintaining them at a level that would cover any need until a new supply of materials. In accordance with the goal, the problem of determining the time of an additional order is solved; the issue of the size of the order is not considered.

Depending on the type of checking and issuing of orders, there are two methods of material supply based on the consumption carried out, known as inventory management systems. These are methods: ensuring timely orders (inventory control system with a fixed order size) and the necessary rhythm (inventory control system with a fixed frequency).

2.2 MRP-1 methodology (material requirements planning)

In the 60s, through the efforts of Americans Joseph Orlicki and Oliver Waite, a method was created for calculating the materials required for production, called MRP (Material Requirements Planning). Thanks to the focused work of the American Association for Inventory and Production Management (APICS), the MRP method has become widespread throughout the Western world, and in some countries (including Russia) it is even treated as a standard, although it is not one.

Goals of the MRP system:

Satisfying the need for materials, components and components for planning production and delivery to the consumer;

Maintaining low levels of inventories of material resources and finished products;

Planning production operations, delivery schedules, purchasing operations.

In the process of achieving these goals, the system ensures the flow of planned quantities of material resources and product inventories during the time used for planning. The MRP system begins its work by determining how much and in what time frame it is necessary to produce final products. The system then determines the timing and required quantities of material resources to meet the production schedule needs.

The core of the MRP system is a software package that carries out all calculations and analysis using certain algorithms based on a database of materials and their inventories, and on the basis of a production schedule. At the output, the software package provides a set of documents, including schemes for the delivery of material resources by department, volumes and delivery times.

Then all the plans are actually implemented. Thus, the MRP system pushes material resources through departments as planned. In case of failures or changes in the production program, everything has to be rescheduled again.

The MRP method involves a number of standard steps.

At the first stage, a calculation is made of the net requirements for materials based on data on the composition of the product (specifications). The number of required materials, assemblies and components is estimated taking into account those available or in work in progress.

The second step is the calculation of net material requirements over time based on product composition data. At this stage, the required quantities are calculated taking into account all receipts and expenses of materials. If the system detects that the material level has fallen below a certain level, the quantity that needs to be purchased or produced to meet the requirement is determined. It is also possible to calculate net requirements taking into account the batch rule (taking into account the minimum order quantity, batch multiplicity, order frequency).

The third step is determining the timing of purchase and production. At this stage, for the planning and supply departments, the system determines the timing of the start of actions to implement the calculated net needs. The MRP algorithm starts with the date of realization of the final requirement and “unwinds” back in time the process of manufacturing a product or purchasing materials, determining the start dates of production operations with lower-level components (parts), up to determining the dates for the formation of orders to suppliers.

One of the features of the method (compared to management by reorder point) is that MRP does not assume the possibility of the necessary materials being out of stock. If all initial data and planning procedures are carried out correctly and all deviations in the implementation of the plan are taken into account in a timely manner, then all deliveries of parts and materials should be realized exactly on time. In addition, the MRP method does not look to the past: the required materials are calculated based on information about future needs and expected inventory levels in warehouses.

The advantages of this method are the ability to take into account the future needs of the enterprise, create orders for replenishment of inventories at the required time and in the required volumes. The disadvantage of MRP is the inability to take into account the limited resources of the enterprise.

The main disadvantages of MRP systems:

Significant amount of calculations and data pre-processing

An increase in logistics costs for order processing and transportation as the company strives to further reduce inventories of materials or switch to working with small orders with a high frequency of their fulfillment

Insensitive to short-term changes in demand

A large number of failures due to the large size of the system and its complexity.

Added to this are the common disadvantages of all push systems: insufficiently accurate tracking of demand and the mandatory presence of safety stocks.

Material requirements planning is affected by the accuracy of specifications and inventory records - an error in any data can result in the wrong quantity being calculated or the wrong components being ordered; this error cannot be corrected until it is physically detected, and often takes several weeks to resolve. The reliability and speed of early systems meant that it took a very long time to run the system, ranging from 24 to 48 hours. Therefore, runs were done infrequently and it was not possible to check the feasibility of the master production plan through repeated MRPI runs (to check that the system-generated work orders were not too large and that they matched the available production resources). Therefore, the basic plan was often not implemented and became outdated.

It was also impossible to quickly adjust data or reflect in the plan the changes that occurred every day in warehouses and production. Usually, as a result of this, a significant difference appeared between the formally adopted needs plan and the informally operating “deficit” sheets that adjusted the implementation of the plan. The system was often ignored as work orders were piled on top of each other at one end of the plant and eventually pulled out and shipped to the customer at the other end after receiving high enough priority, holding up all other items. It is not surprising that the first implementations received unflattering reviews.

MRP systems are used, as a rule, when the demand for material resources strongly depends on consumer demand for finished products, or when it is necessary to work with a large range of material resources. In general, MRP systems are preferable when there is a sufficiently long production cycle.

2.3 Methods for calculating the need for basic materials

The enterprise's logistics plan provides for:

Determining the total need for material resources

Determining the volume of materials reserves;

Calculation of expected balances of materials at the end of the year;

Establishing the volume of import of material resources.

The initial data for drawing up a logistics plan are: production program, range of materials, consumption rates, planned prices and reporting data on consumption and balances of materials in warehouses.

Requirement for basic materials for the program (Ro) determined by direct counting (for products, parts, representatives and analogues) by multiplying material consumption rates (Hi) by the number of products according to the program (Ni), taking into account the nomenclature P, those.

The working capital norm is the minimum requirement, expressed in relative terms (days or percentages), for certain types of inventory assets, ensuring an uninterrupted, rhythmic production process.

The need for basic and auxiliary materials (P) for technical preparation of production and for technical maintenance of production is determined by multiplying the program or volume of these works (Nj) in conventional meters (machine-hour, repair unit, etc.) by the consumption rate of basic or auxiliary materials ( Hj) for each name of materials, i.e.

(2)

Providing production with the entire range of material resources largely depends on the size and completeness of production inventories in the warehouses of enterprises and associations. In enterprises and associations, reducing inventories reduces the cost of maintaining them, which helps increase profits and profitability of production. Therefore, the development of measures to optimize reserves is one of the most important economic tasks.

Inventory management in industrial firms and companies involves performing the following functions: developing inventory standards for the entire range of materials consumed by the organization; correct placement of inventories in warehouses that are part of the enterprise association; organizing effective operational control over inventory levels and taking the necessary measures to maintain their normal condition; creation of the necessary material base for safety.

The most important and time-consuming of these functions is inventory rationing. The production inventory norm (Zн) is established according to the following formula:

Zн=Zт+Zstr+Zpod, (3)

where Zt is the current average stock;

Zstr – safety stock;

Zunder – preparatory stock.

The current stock is created for each type of materials to ensure production of materials in the intervals between two next deliveries and varies from the maximum value at the time of delivery to the minimum at the time of the next delivery. Its size is determined by the average delivery interval (t avg) and the average daily material consumption (W day):

Zt= t av ´ W day (4)

The delivery interval depends on the specifics of obtaining material and technical resources, product supply standards, carrying capacity of vehicles, the possibility of using a warehouse form of supply, etc.

The safety stock is calculated in a certain proportion to the current stock (for example, 50%) or by calculation using the following formula:

(5)

where t f i- actual interval of the 1st delivery, days;

B- batch sizes of incoming materials in the 1st delivery, natural units;

i – serial number of delivery of the materials in question.

Preparatory stock is created for the period of preparation of received material for production consumption (in the amount of 1-3 days' requirement). In some cases, there is a need to create special preparatory stocks (drying lumber, completing products, etc.), their value is determined by specific calculations.

Estimated reserve rates can be expressed in absolute (tons, pieces, meters, rubles, etc.) and relative (days, percentages) units of measurement.

Providing material resources to production workshops, sites and other divisions of an industrial company involves performing the following set of works: planned establishment of quantitative and qualitative supply targets (limitation); preparation of material resources for production consumption; release and delivery of material resources from the warehouse of the supply service to the place of their direct consumption or to the warehouse of a workshop or site; operational regulation of supply in the conditions of improvement of technological regimes, design and regulatory documentation; strict accounting and control over the use of material resources in the divisions of an industrial company.

For the planned establishment of tasks for the supply of production workshops and areas, a limit system is used based on the calculation of the maximum quantities of material resources for each workshop, area for a certain period (quarter, month) with the issuance of limit cards or group limit statements. The limit (L) is calculated using the formula:

L = R c ± P + N c – O calc. (6)

Where Rts - the need of the workshop to fulfill the production task;

R- the need of the workshop to change work in progress;

NC- standard workshop stock of this material;

Orasc- the estimated expected balance of this material in the workshop at the beginning of the planning period.

3. Ways to improve the organization of providing a company with resources for carrying out productive activities

3.1 Experience of foreign countries in improving the organization of providing a company with resources

Recently, Japanese systems for organizing the provision of resources to a company, based on the concepts of “lean manufacturing and six sigma” and target costing, have become widespread in world practice.

The concept of lean manufacturing, like target costing, is of Japanese origin and means “improvement.” The basis of the concept is to reduce the time spent on operations that do not add “value” to the final product. Such operations include “storage”, “accumulation”, “movement”, etc.

Most materials in the manufacturing process spend 95% of their time waiting to be added value or in finished goods inventory. By reducing wait times by 80%, you can reduce manufacturing overhead and quality costs by 20%, and benefit from proportionally faster delivery times and reduced inventory.

The synergy of Lean and Six Sigma methods has helped companies reduce manufacturing overhead and quality costs by 20% and inventory by 50% in less than two years.

Lean manufacturing includes:

– participation of the entire enterprise team in eliminating unproductive losses;

– implementation of innovative ideas of the enterprise team;

– the real contribution of the enterprise team to improving quality and saving money, the desire to make production simpler and cleaner.

The main problem for Russian enterprises in applying such a methodology is often the lack of corporate culture and common values, which leads to the fact that employees are not a single team.

The most popular system that incorporates the lean manufacturing philosophy is the just-in-time (JIT) system. When using a JIT system, components, raw materials and services arrive at the work center exactly when they are needed there. This approach significantly reduces the queues of products sent to the work-in-process inventory.

JIT manufacturing goals: the right part in the right place at the right time. If MRP is based on computer computing in achieving this goal, LT is primarily based on industrial technology. LT focuses on eliminating waste in the supply chain.

One of the necessary consequences of the arrival of components and materials immediately when they are needed is the high quality of the arriving units. The LT system applies several interrelated principles to ensure high quality products at every step of the production process.

First, responsibility for quality rests with the part manufacturer, not the quality control department.

Second, using production workers instead of quality control supervisors allows quality to be achieved at the production stage rather than the inspection stage. This feature and small batch sizes help to closely monitor each process and ensure every product is tested.

Thirdly, the JIT concept insists on mandatory compliance with quality standards. Purchasing specialists do not accept products that do not meet the established parameters and visit the supplier's plants to check the quality themselves at the workshop level. Because such visits and therefore inspections are frequent, LT manufacturers document the quality of their products in generally accepted terms and place these documents so that they are easily accessible. This process forces the manufacturer to precisely articulate the essence of quality.

The operation of the JIT system as a “pull” control system can be well understood using the example of the Kanban system.

Kanban is a simple but effective control system that helps implement the JIT system in practice. Kanban is not synonymous with JIT, although the terms are often—and incorrectly—used that way. Kanban means card in Japanese, and the use of such cards has become a basic element in many control systems used in Japanese companies, including Toyota, whose kanban system has attracted much attention from specialists around the world.

Kanban systems require small batch sizes, which is typical of JIT, and disparate production units. They are less suitable for high-value or large items that are expensive to store or move in large quantities, for products that are used infrequently or irregularly, and for industries with mass production.

One reason for the cost savings that come from shorter lead times is that slow processes are expensive. Slow-moving inventory needs to be moved, counted, stored, removed from storage, and moved again. They may become damaged or become obsolete.

It can be concluded that the concepts developed in Japan are essentially strong customer-oriented production organization techniques.

For example, consider the development of agriculture in Japan. Agriculture in Japan is based primarily on family enterprises (68% of all farms are farms with an area of ​​cultivated land of up to 1 hectare).

Although labor intensive and not very efficient, Japanese farmers use measures such as providing enhanced services to clients, demonstration farms, and part-time training for entrepreneurs and model farmers. All these ideas are now generally accepted, but many countries lack systematic implementation, and in this sense the Japanese have succeeded where others have failed.

Japanese farmers use tractors, pickup trucks, electric cultivators, rice planters and combines to help them increase their productivity. Using intensive farming methods, fertilizers, sophisticated machinery and carefully refined technology, farmers are able to produce half of all the fruits and vegetables consumed in Japan, while still maintaining some of the farm's acreage for livestock. So Japanese agriculture provides a significant portion of the food consumed.

Modern technology has made new farming methods possible. Part of the crop in Japan is grown hydroponically, that is, without soil - just in water. The use of genetic engineering makes it possible to obtain harvests that are richer and safer for human health.

Thanks to the production control system, the Government buys rice and wheat from farmers at official prices and finances programs for technical modernization and energy supply to farms.

Lean production concepts and government support have helped Japanese agriculture become one of the most successful producers of grain crops.

3.2 Experience in using information systems for planning resource needs at domestic enterprises

The formation of the Russian software market for enterprise management can be dated back to the early 90s, when the country began to liberalize economic relations. At the same time, the first commercial developments of Russian software companies appeared on the market, as well as solutions from foreign companies designed to provide comprehensive management of enterprise resources. And then such systems began to be called corporate information systems (CIS).

At the moment, some of the main trends in the Russian corporate information systems market are:

Integration of domestic and foreign systems;

Increased intensity of competition between Russian CIS developers;

Increased intensity of competition in the segment of medium-sized enterprises;

Following global trends in the development of the CIS market.

The current state of the computer systems market in Russia is characterized, first of all, by a certain stage in the development of the majority of Russian suppliers and the arrival of Western developers and their partners on the Russian market.

Most Russian systems began to exist at the turn of the 90s, when objective business needs led to the fact that enterprises and firms began to think about computerization. Due to the general laws of a market economy, trade or service enterprises were the first to allocate the necessary financial resources. Industry lagged significantly behind due to many reasons.

Thus, almost all Russian systems began to develop as accounting (accounting) systems. Many of them continue to remain purely accounting, allowing the automation of one or more functions of the enterprise, but not providing a holistic picture necessary for managing an industrial enterprise.

In addition, only a few developers (and there are more than a hundred of them) were able to adequately foresee the development of events and, instead of simply increasing sales of “boxed” solutions, preferred evolutionary qualitative growth, investing in the development of systems and research work.

Several years ago, in the Russian market of corporate information systems, there was a problem of integrating domestic and Western applications. Today, many enterprises are implementing Western corporate systems to solve certain business problems, successfully integrating them with previously installed domestic systems.

As the market develops and grows, Russian developers will compete more intensely in the fight for consumers, both among themselves and with external competitors. If a few years ago the struggle for the consumer was carried out mainly on price criteria, now most information system developers focus on the level of quality of the system, the level of its support, the qualifications of specialists and long-term cooperation with the customer.

Competition with external competitors will be conducted using such advantages as more complete functionality of financial and personnel modules, a more favorable price/quality ratio, the ability to integrate with applications of foreign developers, and the creation of mixed CIS that combines the advantages of domestic and foreign CIS.

Following global trends is evident primarily in the field of e-commerce and customer relationship management applications. At the moment, these functions are implemented by most of the systems of Russian developers, however, in terms of their functional characteristics, Russian e-business and CRM applications are significantly inferior to Western ones. In addition, the demand for these applications from customers is not yet high.

In general, the Russian CIS market today is divided between Western and Russian CIS not by industry, but by the size of enterprises. Most users of large Western CIS are large domestic enterprises in the oil and gas industry, heavy industry, mechanical engineering, etc. Only a small number of Russian suppliers have such contracts.

Based on this, we can assume that in the next few years the main competition will take place between CIS for medium-sized enterprises. Over the past few years, several Western developers of ERP systems have entered the Russian market and are focused on delivering solutions for medium-sized businesses. During the same period, many Russian developers significantly increased the functional composition of their CIS, which also allowed them to enter the market of medium-sized companies.

Today, the main reasons for implementing an integrated corporate system in an enterprise are the following (in descending order of mention by system users): lack of real data integration; lack of functionality of the existing information system; increasing the volume of business transactions; international reporting requirements; the need for analytical data processing; non-compliance with MRP/ERP standards.

Among the main reasons for unsuccessful implementation of CIS by solution providers, the following are primarily noted (in descending order of mentions): the company’s unpreparedness for changes; insufficient level of management knowledge among the customer’s management specialists; lack of real need for the system on the part of the customer; implementation is carried out only by our own IT department; vagueness of the goals and objectives of the project, unclear formulation of the customer’s needs; lack or weak support of the project by the company’s management; budget reduction during implementation.

Most of the listed reasons for unsuccessful implementations relate to problems of enterprise management and readiness for fundamental changes not only at the level of using the information system, but also at the level of the organizational structure and business processes.

The practice of implementing corporate systems at Russian enterprises over the past ten years has revealed a number of common factors that must be taken into account when choosing a supplier. First of all, these include: completeness of the systems functionality; level of implementation of functional modules of systems; cost and duration of implementation; the impact of the system on the business and business processes of the enterprise; efficiency of using the system in the enterprise.

In recent years, proposals have appeared on the market that indicate a further deepening of the processes of market specialization, which reflects the objective needs of manufacturing enterprises. Indeed, if the proposals of the “first wave” were one and the same: universal and multifunctional, which was the main emphasis in marketing, then as the qualifications of specialists from enterprise automated control systems departments and consultants grew, the shortcomings of such solutions began to become more and more obvious. Namely: the complexity or even the impossibility of adapting to the specifics of a particular production, the lack of “small” but necessary accounting and functional capabilities, such as the ability to calculate and model prices for each order at the stage of its execution, taking into account the technological features of flexible and multi-variant production, which is printing, the inability to take into account and plan the replenishment of technological supplies of materials at each workplace, and many others.

All proposed information systems can be divided according to their size and functionality. Table 1 shows the main suppliers of enterprise systems data.

Table 1

Main software products on the Russian market

All systems given in the table can be divided into two large classes: financial and management and production systems.

Financial and management systems include subclasses of local and small integrated systems. Such systems are designed for maintaining records in one or several areas (accounting, sales, warehouses, personnel records, etc.). The systems of this group can be used by almost any enterprise that has sufficient financial flow management functions and other, usually simple, accounting functions. An important characteristic of such systems is their level of integration. In the simplest case, this characteristic indicates the implemented relationship in accounting functions along the standard chain: sales - warehouse - purchasing - finance.

Manufacturing systems include subclasses of medium and large integrated systems. These systems are primarily designed to control and plan the production process. The accounting functions are deeply developed, although at first glance they play an auxiliary role and sometimes it is impossible to separate out the accounting module separately, since the information in the accounting department comes automatically from other modules.

Production systems are more difficult to install (the implementation cycle can take from 6-9 months to a year and a half or more). This is due to the fact that the system covers the needs of the entire production enterprise, which requires significant joint efforts by the enterprise employees and the software supplier to create an adequate “transparent” picture of all processes.

Manufacturing systems are always focused on one or more types of production, which mainly differ in the methods of enterprise resource planning.

For small businesses, trading firms and companies providing services in terms of price/quality ratio, financial and management systems are most suitable, since the main tasks to be solved are accounting, product warehouse management, and personnel management. Financial and management systems can also be used in small manufacturing enterprises if the production process is not complex.

For small and medium-sized manufacturing enterprises with a small number of legal entities and relationships, medium-sized integrated systems or simple configurations of simplified integrated systems will be most effective. For such enterprises, the main criterion is production management, although accounting tasks remain important.

For large holding structures, financial and industrial groups, management companies, where the management of complex financial flows, transfer prices, and information consolidation are of paramount importance, in many cases large integrated systems are more suitable. These systems also have good solutions for production management and can cover the entire range of requirements of a large holding company.

To automate giant enterprises in world practice, a mixed solution from classes of large, medium and even small integrated systems is often used, when, for example, SAP/R3 works at the management level of the entire structure, and manufacturing companies use middle-class packages. The creation of electronic interfaces simplifies interaction between systems and avoids double data entry.

Conclusion

In conclusion, it should be noted that supply to the enterprise plays an important role, since the further progress of production depends on this function.

Logistics support (MTS) is a type of management activity to provide material and technical resources to the production process. Such activities are usually carried out before production begins. Providing logistics can be carried out both by specialized services at the enterprise itself, and by independent organizations for which such activity will be the main one. The main goal of logistics is to bring material resources to specific production enterprises at the place of consumption predetermined by the contract.

Supply today is one of the functions of logistics. Logistics performs a complex function and is an independent area that covers the problems of physical movement of material resources in time and space at all stages of the enterprise.

Logistics functions are implemented at all stages of production and movement of material resources. Therefore, they separate the logistics of production, supply and distribution (sales).

Supply and distribution logistics covers not only issues of intra-production movement of materials, but also, to a large extent, the movement of material resources outside the enterprise. Therefore, logistics functions are closely intertwined with other functions to ensure the movement of material flows.

Effective organization of supplying an organization with material resources becomes a key factor in the functioning and development of the organization. The lack of reserves leads to the fact that the activities of manufacturing organizations malfunction, even to the point of stopping production. Thus, production processes require complete, high-quality, and most importantly, timely maintenance, which indicates the need to store inventories. This is also affected by the prices of raw materials, materials that may be subject to significant seasonal fluctuations and specific operational impacts. When the price is low, it is often profitable to create large reserves of raw materials, goods, materials, which would be enough for the entire period of increased prices. Incorrect demand forecasts and inventory calculations can cause little damage, but sometimes such miscalculations can have a significant impact.

Procurement performs such commercial (purchase of materials) and technological (delivery of materials) functions.

There are transit and warehouse forms of logistics organization. The logistics infrastructure includes warehouse, transport and procurement departments. Individual enterprises may also have divisions for processing industrial waste and packaging waste.

When determining the need for materials, methods based on planned tasks, based on current consumption, and the order method are used.

Recently, computerized software packages for managing material resources have become widespread. In particular, in our work we examined the mechanism of action of the MRP system.

In foreign practice, Japanese concepts of organizing production and material supply are becoming widespread. Such concepts include lean manufacturing implemented in the just-in-time and kanban systems.

List of used literature

1. Galikov E.A. Marketing and logistics: new business tools. – M.: Exam, 2006.

2. George M. L. Lean manufacturing + six sigma. Combining Six Sigma Quality with Lean Speed. Publisher: Alpina Business Books, 2005.

3. Zhdanova L.A. Organization and management of an industrial company in developed countries. – Kazan: Economics, 2009.

4. Kobets E. A. Planning at the enterprise. Taganrog: TRTU Publishing House, 2006.

5. Nigil Slack. Organization, planning and design of production. Operations management. – M.: Infra-M, 2009.

6. Sergeev I.V., Economics of organization (enterprise). – M.: Prospekt, 2005.

7. Sklyarenko V.K., Prudnikov V.M. Enterprise Economics: Textbook. – M.: INFRA-M. – 2006.

8. Turovets O.G. Organization of production at the enterprise. – Rostov-on-Don: Publishing house. Center MarT., 2002.

9. Fatkhutdinov R.A. Production management: Textbook for universities. - St. Petersburg: Peter, 2003.

10. Chueva L.N. Economics of the company. Textbook for students. – 2nd ed. – M.: Dashkov and K. – 2008.

11. Economics of an enterprise (firm): Textbook / Ed. prof. O. I. Volkova and Assoc. O. V. Devyatkina. - 3rd ed., revised. and additional – M.: INFRA-M. – 2007.

12. Enterprise Economics / Ed. K.M. Semenova. – St. Petersburg: Peter, 2007.

13. Enterprise Economics / Under. ed. prof. Gorfinkel V.Ya. – M.: UNITY-DANA. – 2008.

14. Enterprise Economics: Textbook, ed. N.A. Safronova - M.: “Lawyer”, 2006.

15. Economics of the company: Textbook / Ed. Ed. Prof. N.P. Ivashchenko. - M.: INFRA-M, 2006. .

16. Yarkina T. V. Fundamentals of enterprise economics: a short course: textbook. - M.: 2007.

17. Gavrilov D. Practice of using MRP systems // Director of Information Services. – 2003. – No. 4.

18. Russian market of corporate information systems // Computer Press. – 2005. – No. 3.

19. Shukaev A.I. Models for planning the purchase of material resources // Management in Russia and abroad. – 2005. – No. 3.

20. Karpachev I. I., Kolesnikov S. N. Resource management systems [Electronic resource]. – Access mode: http://consulting.ru/econs_art_749273811

The main task of the purchasing department is the organization and implementation of purchasing activities, placement of goods in warehouses, calculation and replenishment of safety stock for all product items. By optimizing this department, it will be possible to free up additional funds by saving on purchasing volumes and minimizing inventories, as well as introducing automated management.

Functional responsibilities of the purchasing department

Before the optimization process, it is necessary to determine the functionality of the purchasing department. This is, first of all, analysis and accounting of goods. A group of managers working on accounting must identify the shortcomings of the existing product procurement system, which leads to a shortage or excess of inventory. Particular attention should be paid to the presence of analogues that can be interchanged. In this case, this leads to a doubling of sales or inventory in warehouses, which significantly distorts the actual amount of inventory and does not allow for correct purchasing.

In specialized software, product analysis and analogue accounting can be carried out analytically.

1. Example of accounting for analogues in the Forecast NOW! program:

Analogues are set with one click of the mouse in the program or are automatically downloaded from the user’s accounting system.

After this, the order is calculated only for the main analogue, but the sales history for all similar products is taken into account.

2. Conducting analytics and identifying products with excess (insufficient) stock levels in the Forecast NOW program!

It can be seen that, despite the high sales of flour products, they have the highest minimum balance. Accordingly, this balance can be gradually sold off, and then purchases can be stabilized.

Second example:

The “butter” product group has a fairly high deficit (more than 20%), and the second average sales in the group. Accordingly, it may be worth increasing the level of service for this group.

Thus, the use of software significantly facilitates the work of the procurement department at the stage of analytics and accounting for analogous goods.

The main task of the purchasing department is to calculate purchase volumes. This is done using a calendar plan, which is drawn up taking into account fluctuations in consumer demand for each product item. According to this document, based on the planned need, a plan for purchasing goods is determined. The need can be most accurately calculated using the principles of ABC analysis. For each group of goods, a separate procurement plan is developed, which allows you to plan the flow of finances for a long period.

Using software, you can significantly simplify and make the calculation of purchase volumes more efficient.

1. The program will generate an automatic delivery schedule taking into account delivery times, frequency of orders and other factors.

2. After generating the delivery schedule, the program will accurately calculate the volume of orders. This way your deliveries will be precisely planned.

Example of planned deliveries in the Forecast NOW! program:

Also within the purview of purchasing department managers is the selection of suppliers for each type of product. They submit their proposals to management, which approves the final list. The supplier can be selected on a competitive basis, at thematic exhibitions or on the basis of personal connections. The agreement for the supply of goods is fixed in the form of a contract, which must specify the quantity of goods supplied and the possibility of changing the assortment. In addition, it indicates the frequency of delivery and clarifies logistics issues, as well as provides for penalties for failure to comply with the terms of the contract.

Optimization methods

Optimization of the purchasing department can be done in different ways. One of the most common in large enterprises is the division of functional responsibilities between several departments. Thus, the scope of functional responsibilities of managers is narrowed, which allows them to more effectively solve the tasks assigned to them. At the same time, it is necessary to think through a system of horizontal communication between such departments, otherwise this may lead to confusion during procurement, for example, a situation may arise in the simultaneous purchase of several analogues, which will lead to excess inventory. Or, conversely, managers will not order goods, relying on each other.

Systematic improvement of employee qualifications seems to be a very beneficial method for optimizing the purchasing department. In this case, the funds spent on training are recouped many times over by reducing the number of errors in planning and implementing procurement activities. Here it is necessary to provide for the employee’s contractual obligations to the enterprise, since there is a high probability that a competitor, without investing in staff training, will simply offer a highly qualified employee a higher salary. This will lead to direct and indirect losses (and possibly leakage of proprietary information), and this technique will be ineffective.

Many companies are increasing the number of purchasing department employees. This method of optimizing the purchasing department is effective only up to a certain point. With an excessive increase in the number of employees, the management system is disrupted when functions are duplicated, as a result of which they are performed poorly. At the same time, the cost of the wage fund increases many times over. To avoid this, it is best to create a rigid staffing schedule and strictly adhere to it, adjusting it only if truly necessary.

In modern companies, purchasing departments are equipped with modern software. This really helps optimize their activities, but only if several conditions are met. First of all, you need, with the help of specialists, to select the right program, which is designed specifically for the type of activity that the enterprise is engaged in, and this is a considerable financial investment. At the next stage, you need to account for goods and analyze purchasing activities, which should be entered into the parameters of the procurement automation system. In addition, the issue of training personnel, who must learn to work in new conditions, again arises. If you meet all the requirements and avoid problems that may arise when implementing the software, all costs will be recouped very quickly and the optimization of the purchasing department will be very effective.

In this article you will read about why an enterprise needs a procurement department, what structure of the procurement department can be considered optimal and how to organize effective management of the procurement department. Read on for answers to these questions, as well as detailed information about the roles and responsibilities of the procurement department.

You will learn:

• Why does a company need a procurement department?
• What is the optimal structure of the supply department?
• How to organize the management of the supply department.
• What functions of the purchasing department are important?

Why does a company need a purchasing department?

Work of the supply department necessary in order to maintain a sufficient supply of goods in the enterprise. He is engaged in determining the company's needs for certain materials, goods, technical resources, as well as organizing their storage and issuance, controlling the purpose of the use of material and technical resources and promoting their savings.

When solving this problem, employees of the supply department will have to study, take into account supply and demand for all consumed material resources, as well as analyze the level and fluctuations of prices for products, for intermediary services, search for the most profitable option for distribution of goods, optimize their inventories, taking into account the reduction of warehouse and transport-procurement costs

The main function of the supply department is the optimal, timely provision of appropriate material resources for production - of suitable quality and complexity.

What functions does the procurement department perform?

The functions of the procurement department are presented in 3 basic areas:

1) Planning, including:

• study of the internal and external environment of the enterprise, markets for individual products;
• forecasting, determining the enterprise's needs for material resources of all types with planning of optimal economic relations;
• planning the need for materials with setting a limit on supplies to workshops;
• optimization of production inventories;
• operational supply planning.

2) Organizational functions:

• collecting information about product needs, participating in sales exhibitions, fairs, auctions, etc.
• analysis of sources of satisfying the need for material resources in order to determine the optimal one;
• obtaining and organizing the receipt of real resources;
• concluding business supply contracts with selected suppliers;
• providing sites, workshops, and workplaces with the necessary material resources;
• organization of warehousing, which is part of the supply authorities.

3) Control and coordination of work:

• monitoring the fulfillment of suppliers' obligations under contracts, delivery deadlines;
• incoming control of the complexity and quality of material resources supplied to the enterprise.
• inventory control;
• bringing forward claims against transport companies and suppliers;
• analysis of the work of the supply service, development of measures for coordinating supply activities, increasing the efficiency of its activities.

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Supply department structure

Among the main factors determining the structure of the supply department, it should be noted:

1. Enterprise size,
2. Industry affiliation.
3. Type of production.
4. Number and geographical location of suppliers.
5. Volumes and range of material resources consumed.
6. Volumes and range of products produced.

The units that make up the supply service, their numbers and functions depend on these factors. The supply service is organized taking into account the experience of similar enterprises, as well as the requirements for the effective implementation of all supply functions.

When forming a supply department, the main condition is the principle of completeness and complexity - the structure must include all divisions that are involved in supply.

An important factor influencing the structure of the purchasing department is the size of the enterprise. Procurement departments will vary across businesses of different sizes. At large enterprises, a procurement, logistics and procurement management system is organized with different divisions and departments according to functions and areas of activity. At medium-sized enterprises, departments of material and technical supply, logistics and procurement are organized.

The management of material and technical supplies in small enterprises is dealt with by the head of the enterprise or his deputy - this is typical for non-production enterprises. In a small enterprise, as it enlarges, a supply department can be formed. When creating a supply department in a company, all functions of warehousing, delivery, and inventory management are transferred to it.

Among the main types of organizational structures of the supply service are:

1. Functional structure:

• transportation Department;
• purchasing department;
• planning and dispatch department;
• storage facilities;
• cargo customs clearance group.

This structure of the supply department is suitable for medium-sized enterprises without a logistics department. The planning and dispatch department deals with procurement planning, control, regulation and analysis of the implementation of the supply plan. The functional structure is basic; its elements are present in other types of organizational structures of the supply service. In small enterprises, as a rule, the MTS service includes a transport department, a purchasing department and a warehouse.

2. Commodity structure.

When an enterprise uses a wide range of material resources with significant volumes of purchases, commodity divisions can be formed in the supply service that work with material resources of certain types. A similar structure is typical for large wholesale and manufacturing trading companies.

Commodity divisions are engaged in the operational functions of supply and procurement of specific material resources. The planning and dispatch group is engaged in planning, monitoring and regulating the implementation of the supply plan. The customs clearance group ensures the registration of customs documents with the passage of materials purchased abroad through customs.

3. Market structure.

When an enterprise purchases resources in different markets or in different countries, regional divisions are formed in the supply service, working with suppliers from these markets (countries). As a result, it will be possible to take into account legal norms and the specifics of these markets.

4. Matrix structure of the supply service.

It is formed when a company implements several projects or when producing different types of products. In this case, for each product or project, its own procurement unit is formed.

When a logistics service is created in a company, the transport, dispatch, customs clearance and warehouse departments are transferred to its structure.

Shops at large enterprises have their own supply departments involved in planning. Operational regulation of the supply of sites and workshops with material resources. These divisions have their own warehouses, receiving material resources from the warehouses of the enterprise's supply department.

The supply service at large enterprises may include an external cooperation department that provides components and semi-finished products from suppliers. These departments can be built on the basis of a product or functional characteristic.

Where does the purchasing department get suppliers?

• catalogs and price lists;
• Internet;
• trade magazines;
• competitions;
• advertising materials - advertisements in the media, company catalogues;
• fairs and exhibitions;
• financial institutions of official bodies, banks;
• trade directories;
• trades and auctions;
• trade missions;
• own research;
• competitors of potential suppliers;
• personal contacts, correspondence with possible suppliers;
• specialized news agencies, research organizations;
• trade associations;
• registration chambers, government departments, licensing services, tax inspectorates and other bodies with open information.

Competitive procurement can bring significant benefits

Oleg Umrikhin,

General Director of the company "TenderPro", Dolgoprudny, Moscow region

Through competitive procurement, a company can gain significant benefits by identifying the best bids from suppliers. Competitions, depending on the methods of holding, may be as follows:

• "Paper" competition. Suppliers' proposals at the tender for one or more goods are submitted in sealed converters. Usually, before a tender, suppliers are checked on formal grounds. Among the main advantages of such a procedure, it should be noted that it is regimented, systematic, formal and collegial. Although it is not without its shortcomings. In particular, the complexity of analyzing questionnaires, sending invitations, and comparing offers.
• Corporate trading platform. An electronic competition for which your company’s special website is used. This option is characterized by the ease of submitting supplier proposals, sending notifications, and a competitive list. Among the disadvantages is a serious waste of time and money for implementation. At the same time, the project depends on the involved developers.
• Intercorporate platform. Information about company purchases can be posted on special Internet platforms. Such a platform should be selected taking into account its reputation, reviews about it, ease of working with the portal, and the technical capabilities of the portal. It is also necessary to find out the proposed payment schemes for services.

What mistakes does the procurement department often make?

1. Irregularity in organizing the supply of certain materials. As a result, the company's resources are either idle or emergency work occurs.
2. Failure to fulfill requests for spare parts for scheduled repairs of equipment.
3. Unscheduled work of the supply department, everything is done at the last moment.
4. The warehouse was not informed about the expected arrival of inventory items - with transport downtime awaiting unloading, and penalties arising.
5. Incompetent selection of a supplier - with disruption of deliveries, inflated contract prices, and inadequate product quality.
6. Incorrect accounting of inventory items. As a result, it is difficult to understand the amount of inventory in a warehouse.
7. Lack of inventory management system. A lot of unclaimed materials accumulate in the warehouse, but at the same time there is a regular shortage of the necessary ones.

How to control the work of the supply department

1. Procurement planning. Unscrupulous supply managers often purchase materials and raw materials from the “necessary” companies in volumes that are significantly higher than production needs.
2. Selecting a supplier. You need to start by forming a lot, determining in what batches the purchases will be made. It is necessary to establish such rules to stop the risk of splitting relatively large parties into several small ones. The approval of the list of suppliers from which the company will choose should be carried out by a commission, including an employee of the internal control department or financial service. This commission is responsible for approving the final pool of suppliers. Based on the approved list, the manager will send identical requests to eliminate the risk of receiving price lists from one supplier for retail sales and from another for wholesale sales.
3. Changing supplier. The decision to replace a supplier who has failed to comply with the terms of the contract must be made by the general or commercial director. It would be advisable to indicate in the procurement regulations the criteria by which works, goods and services fall into different categories of importance. This is the defining division when deciding on the appropriate form of procurement - request for proposals, closed or open competition, simple procurement or sole source procurement.

An important condition is the formalization of procurement of all forms, including documentation formats, hierarchy, and timing of decision-making at each stage of the process.

• Training for sales managers: preparing a newbie in 3 steps

We purchase materials strictly according to plan

Alexander Kachura,

Vice President for Finance LLC Construction and Investment Corporation Development-South, Krasnodar

The purchase of materials from our company is carried out strictly according to the procurement plan. A tender bidding system is used. First, a decision is made on each supplier or subcontractor by a tender committee that brings together company executives. Then the activities of this document are regulated by special regulations. Even if there is only a single difference of opinion, an extraordinary meeting will be held, with a decision made on the counterparty in question.

Each supplier and subcontractor is inspected by our security service - with a study of the legality of the business, financial condition, etc. The ownership control department (a division has been formed for internal audit, is directly subordinate to the head of the organization) periodically analyzes prices to understand the compliance of tender documentation.

Thanks to this system, it is possible to avoid artificially inflating prices on the part of suppliers, excluding cooperation with “related” suppliers and random companies whose quality of activity is unknown.

Effective control may also involve other means, including:

1. Before deciding on the need for a certain purchase, it is necessary to compare the purchase request and the budget.
2. Limited access for employees to data on suppliers, quantities of purchases, prices, etc.
3. Correct division of responsibilities along the chain - from application to payment.

How to optimize the work of the supply department during a crisis

Problems of operational planning– the reason for 63% of uncompleted tasks. You need to decide on a strategy that takes into account purchasing in reserve and saving money by purchasing only the required volume “here and now.”

Plan for the short term. During a crisis, supplies need to be planned only based on real needs - with a lack of reserves. There is no need to manage inventory, you just need to arrange purchases on time. Applications must be used by the 15th of this month, and a report must be prepared on the 16th of the goods arriving the following month. For products with a delivery period of more than 1 month, a separate list must be drawn up, indicating the deadline for the execution of requests - the supply department must ensure the delivery of these materials within the specified time frame.

Follow the science. Effective, well-known analysis and forecasting tools should be considered. Among the most common techniques, ABC analysis has recently been noted, which states: “Control over 20% of the dominant subjects allows you to control the situation by 80%.” Also common in trade is ABC-XYZ analysis, which is not particularly suitable for production. The entire range of products is divided into 9 groups, with the identification of suitable options for each of them. Expensive and in-demand goods need to be controlled personally, and some categories simply occupy a warehouse and can be forgotten about for a while.

2) Tackle supplier relationships

Monitor. Monitor all offers - suppliers change the terms and prices of cooperation unevenly. Therefore, it is unacceptable to work with only a few familiar ones due to personal interests or just acquaintance. Yes, there are long-term contracts and obligations should not be violated. But in the event of a price increase or a violation of delivery deadlines on the part of the supplier, there are usually grounds for refusal specified in the agreement.

Demand concessions on prices. During a crisis, the initiative passes to the side of the client, who can.

If you can't pay, negotiate. If the company is experiencing temporary financial difficulties, you can try to agree on the distribution of the order of payments. Offer your suppliers an acceptable repayment schedule and details of cooperation for consideration.

Pay attention to partnership opportunities. One must always seek a compromise between profitable current supply at affordable prices and partnerships for long-term benefits. Many suppliers are ready to make concessions to their clients on many points, including issues of new development and adaptation of components to your needs.

3) Manage your supplies

It is necessary to empty your warehouses of materials and goods that will not be in demand in the near future. It is necessary, first of all, to assess whether these resources could be in demand for auxiliary production, other business areas and general economic services. If this is not possible, you need to think about possible ways to sell them:

Disadvantages can be turned into advantages. The sales department can convince buyers that large inventories are an advantage for the company, given its reliability and stability of supply - with prompt delivery of the required volume, even in large quantities.

Get your warehouse in order. Any manufacturing enterprise has not only a central warehouse, but also local and workshop warehouses; materials can be stored by foremen and foremen. The supply department can control the central warehouse, so all materials need to be capitalized there, including those lying in storage rooms and near machines. If the company operates around the clock, then the warehouse should have a similar schedule. Take inventory, it usually allows you to identify serious unaccounted for inventory.

4) Optimize your frames

This aspect should not be regarded only as a reduction in staff or a transition to a shortened working week.

Distribution of functions, motivation and control. It is unlikely that managerial positions in the purchasing department are necessary if actions are almost always based on orders from above to lower-level managers, and at the same time new proposals are rejected by them. The company can achieve efficiency in a situation where employees painstakingly and responsibly search for the best offers, check the warehouse, taking into account expected price changes. This effect is achieved subject to a clear distribution of functions between employees in the purchasing department and between the supply service and other departments.

It is especially important to develop and operate a scheme for the dependence of the salaries of procurement department employees on the work done and the effectiveness of decisions. It can be based on indicators of their market monitoring, purchasing conditions, and prices. This scheme may be accompanied by a number of nuances that were not initially taken into account - therefore it is subject to regular changes, but must be sufficiently transparent and understandable for employees.

• Functions of the sales department: what a manager needs to know

If you suspect a supplier of kickbacks, involve the security service

Dmitry Grachev,

Deputy Head of the Materials and Technical Supply Department of the Belon Company, Novosibirsk

If you suspect supply service specialists of kickbacks, you need to instruct employees from another service to conduct a blitz audit of procurement conditions. In particular, comparing your purchase prices with public ones, requesting proposals for the main purchased goods on behalf of a fictitious company (or from another company, if the person being checked does not know the relationship of the enterprises). With such communication, it will be possible to determine the supplier’s real prices and understand his methods of lobbying his interests in purchasing companies.

Establish cooperation between departments. The purchasing department needs to control information on the market, informing the production department (sales department in a trading company) about the emergence of new products with better consumer value, properties offered by suppliers. Suppliers will receive data from suppliers about new products and technologies, bringing new opportunities to their work companies.

Information about authors and companies

Oleg Umrikhin, General Director of the TenderPro company, Dolgoprudny, Moscow region. Graduated from the Moscow Institute of Physics and Technology and the Higher School of Economics. Worked for the companies Lukoil, Protek, Rusal. "TenderPro". Field of activity: automation of competitive procedures. Number of staff: 30.

Dmitry Grachev, deputy head of the logistics department of the Belon company, Novosibirsk. "Belon". Field of activity: coal mining and processing, metal trading, production of building materials. Number of personnel: 8000.

Alexander Kachura, Vice President for Finance LLC Construction and Investment Corporation Development-South, Krasnodar. Construction and Investment Corporation Development-South began operating in the construction market of Krasnodar in 1995.

Having entrusted the management of the trade assortment and commodity flows to specialists, management determines the necessary powers and areas of their responsibility, which should be recorded in job descriptions and in the buyer motivation system.

The work of the purchasing department influences the entire company's activities: sales, efficient use of working capital, consumer satisfaction with prices and assortment, warehouse fullness and the efficiency of the internal supply chain. It is associated with the work of employees of almost all departments - from accounting to transport services. In this regard, it is necessary to carefully consider the organizational aspects of procurement logistics.

The most complex models for organizing purchasing activities are typical for large chain stores. Analysis of domestic and foreign experience makes it possible to identify the following models of purchasing logistics of retail chains.

Model 1. Direct from the supplier

Suppliers directly supply all chain stores with goods. Obviously, this is the most ineffective scheme from the point of view of transport logistics, which is also characterized by a high level of costs.

Model 2. Through a distribution center

A retail chain creates its own distribution center. Let us note the positive aspects of this option: reducing inventory in store warehouses, increasing the turnover and manageability of inventory, ensuring the availability of goods during peak sales, ensuring the quality of goods through the organization of a centralized quality service, simplifying interaction with suppliers.

Despite the obvious advantages of the second model, experts recommend that small retail chains, first of all, conduct a thorough analysis of the profitability of creating a distribution center.

When using a distribution center in a small retail chain, the following difficulties may arise:

• The company must invest large amounts of money in the construction of a distribution center (taking into account the development of the network), which is not always profitable.
• Long payback period for a distribution center.
• The distribution center may not be fully loaded, and the costs of its maintenance must be borne in full.
• Maintenance and modification of a modern and fairly complex warehouse information system.
• When renting a distribution warehouse, it may not be adapted to the profile of the retail chain (for example, it may not meet the requirements of temperature, humidity, fire safety).
• The need to purchase and use your own transport, which is not always economically justified.

If the distribution network is small and there is no provision for increasing the number of stores, then you can consider working with a good wholesale trading company (distributor). Based on the efficient logistics of distributors, the network can significantly reduce the cost of purchasing and maintaining its own logistics resources.

Thus, the decision on which purchasing logistics organization model to choose is made by a trading company primarily based on its own development strategy and economic feasibility.

Modern retail chains are developing in two directions: increasing the efficiency of retail chain management and increasing the number of chain stores (taking advantage of economies of scale).

Retail network management models

Experts identify the following models for managing a retail trade network and its purchasing logistics:

Investment model

It assumes the presence of an investing and consolidating center with independent retail facilities. This model is more often used by trading companies that are not network companies in the full sense of the word. They are united either by common investors or by a common brand.

The advantages of this model: management tasks at the central office are simplified, and initiative can be taken locally.

Disadvantages: inability to take advantage of the advantages of the network structure, dependence on the qualifications of store managers, lack of procurement consolidation.

Holding model

The center determines the purchasing policy (suppliers, product range and purchasing prices), but the stores are independent in operational management. High efficiency of information about the condition of retail facilities is not very important for the center. This model is used by a significant part of Russian retail companies, and it successfully implements one of the main tasks of chain retail - consolidation of purchasing policy. Most often, this management model is chosen by retail operators who delegate the functions of operational interaction with suppliers to store managers.

Advantages of this model: flexibility in managing a specific store by local managers.

Disadvantages: excessive growth of the management apparatus and, as a consequence, high costs.

Centralized model

This is the most effective organization of a network trading company. The unified control center delegates to stores the functions that are minimally necessary to participate in logistics operations (ordering goods, inventory, revaluation). At the same time, the network may include stores of the same format or different ones.

The advantages of this model: cost reduction, effective use of the management apparatus with its concentration in a single center. In fact, this is remote management of retail facilities, which allows you to intensify all business processes of a trading company, and therefore gain a significant competitive advantage.

Disadvantages: dependence on the uninterrupted and efficient operation of the information and computer system.

Tray model

This model assumes complete concentration of management in the center and minimization of management functions in the store (except for the sale of goods to customers). The central office houses an information system and records the movement of goods, and the entire network management apparatus is concentrated there.

Advantages of this model: great savings in technical and labor resources.

Disadvantages: direct delivery of goods to the store is excluded, poor consideration of the local characteristics of the stores’ activities.

Hybrid model

Some of the chain's retail facilities are managed centrally, while some stores may operate on a holding or, for example, tray principle. A similar management method is found in retail companies building large national chains. At the same time, regional bushes can act as divisions operating according to a centralized management model. Within these structures, either a centralized or a hybrid management model is used.

Advantages of this model: practically the only possible management method for national and international chain retailers, ensuring a unified product policy.

The disadvantages are similar to those of the holding management model, but they can be significantly reduced if territorial bushes are managed using a centralized or tray method.

Functions of the purchasing department

The purchasing department is a department where decisions are made on the purchase of goods, contracts for the supply of products are concluded, issues of choosing suppliers are resolved, requirements for product quality are established, etc. Internal consumers of the results of the activities of the purchasing service are other functional divisions of the enterprise that require purchased products.

The importance of this division in the structure of a trading company is difficult to overestimate, just as it is difficult to overestimate the importance of properly organized purchasing logistics for the operation of the entire enterprise.

In principle, the procurement of resources in a company can be structured centrally or decentralized. If a company approaches the process from a decentralized position, employees of different structural divisions will independently carry out purchases, each for their own department. The advantage of this approach is the fact that the user knows his needs better than anyone else. The procurement process can be faster with this approach.

However, there are many more benefits to centralized purchasing, which is why almost all but the smallest companies use this approach to purchasing. When purchasing centrally, a specific person is appointed or a purchasing department is created with the authority to acquire resources in the interests of all divisions of the trading enterprise.

Specialists in the purchasing department of an enterprise are responsible for purchasing products in accordance with requests received from internal consumers, or independently monitor the need for resources. Within the purchasing department itself, the activities that make up the Purchasing business process are often subject to further specialization in order to develop the professionalism of purchasing managers.

Purchasing centers of large retail chains usually consist of departments responsible for purchasing some part of the product range. The distribution of assortment between departments often occurs on the principle of similarity of product characteristics. This distribution of labor allows buyers to accumulate maximum knowledge about their product. The larger the retail company, the narrower the specialization of employees in its purchasing center.

In a small company where the purchasing department is represented by one person, naturally, there will be no division of functions.

Goals of the purchasing department

The goals of the procurement department (service) of any manufacturing or trading company:

• Purchase goods and services at the best price.
• Maintain high inventory turnover.
• Ensure delivery of goods on time.
• Purchase goods with guaranteed high quality.
• Maintain friendly partnerships with reliable suppliers.
• Reap maximum benefits for the enterprise.
• Collaborate and effectively interact with other departments of the company.
• Contribute to the achievement of the company's strategic goals, including the implementation of its logistics strategy.
• Reduce the share of procurement costs in total logistics costs.
• Maintain effective automated accounting of purchased goods and support other information flows arising in the course of procurement activities.
• Develop and stimulate activities, improve the qualifications of goods purchasing managers.

The priorities for achieving each goal are determined by a specific company depending on the adopted business strategy. For example, for a company pursuing a cost reduction strategy, achieving the first goal from the list above will be a priority. In conditions of a shortage of some type of resources, the priority will be to ensure their uninterrupted supply so that the normal course of the production or trade process is not disrupted, and during periods of saturation of the commodity market, it is especially important
It becomes necessary to maintain the turnover of a trading company at the required level while minimizing investments in inventory.

Let us consider in more detail the main goals of activities in the field of organization and procurement management.

Delivery time

Late purchases can disrupt the production schedule, which will entail large overhead costs, and goods purchased earlier than scheduled place an additional burden on the company's working capital and warehouse space.

Batch size

The optimal size of the delivery lot, i.e. maintaining an exact correspondence between the volume of supplies and the needs for them. Excess or insufficient volume of supplied resources negatively affects the balance of working capital, the sustainability of product output or the stability of sales of a trading enterprise.

Product quality

Maintaining and improving the quality of purchased products. Purchased resources must be supplied of the required quality, otherwise the final product produced by the enterprise will not meet accepted standards. It is necessary to constantly improve the quality of procurement to ensure the competitiveness of purchased goods and services.

Search for minimum prices

Search and purchase of goods and services at minimum prices. This task is especially relevant for trading enterprises, since purchasing activities require a large amount of working capital, and the lack of working capital, as experience shows, is one of the main problems of Russian business. The profit gained from purchasing at lower prices and especially from reducing overall logistics costs can be very significant.

Market research

Procurement market research. The purchasing department should regularly collect and evaluate information to determine the best sources of purchases and optimize the range of purchased goods.

When organizing the work of the purchasing department, the level of development of purchasing logistics in the company should be taken into account. Experts identify four main stages in the evolution of purchasing logistics, the characteristics of which are given in the table below:

The procurement department (service) is a functionally separate division of the company, which has close contacts with other structures. Thus, employees of the purchasing department carry out purchases by ordering goods from suppliers and transmitting information about orders to the transport department. The transport department takes on the function of physically moving cargo from the supplier to the company's warehouses, where upon arrival it hands over the cargo to the warehouse workers. The warehouse stores goods. Operations department
accounting deals with information logistics. In connection with such close ties, for the rational organization of purchasing logistics, it is necessary to pay constant attention to maintaining effective working relationships between the purchasing department and other structural divisions of the enterprise.

Based on the importance of effective procurement organization for any enterprise, it is necessary to systematically monitor and analyze procurement logistics.

Purchasing Department Performance Indicators

Guided by the functions of the purchasing department, the effectiveness of its work is usually assessed by the following indicators:

• reduction of procurement costs in the structure of general logistics costs;
• level of defects of purchased products;
• share of purchases completed on time;
• the number of situations when the necessary resources were not in stock, which resulted in disruptions in the production schedule or fulfillment of a customer order;
• the number and reasons for changes made to orders due to the fault of the procurement service;
• number of applications received and completed;
• share of transport costs in the structure of total procurement costs, etc.

Functions of a purchasing manager

Each stage of the purchasing process is an opportunity to generate greater profits for the company. This includes choosing the best supplier, obtaining optimal prices, ordering the correct quantity of goods, an effective method of transportation, minimizing losses from defective goods - in a word, everything where a company can reduce the costs of purchasing logistics and thereby achieve greater profits. And all the tools that a purchasing manager uses in his work exist precisely to help him make the right decisions and control the process of goods movement.

The roles and responsibilities of a purchasing manager may vary from company to company. Researchers identify the following purchasing models (Klimenko A. Motivation or imitation? - http://www.iteam.ru/publications/logistics/section_89/article_2843):

Performer model

When the production volume or future sales volume for each product item is known with a high degree of reliability, the key task of the purchasing manager is reduced solely to the strict implementation of the purchasing plan.

Expert model

The expert's task is to find products that will be sold within a short period of time.

Model "genius"

The task of the “genius” is to find a seller who is ready to provide the highest quality goods at the lowest prices and offer huge deferred payments, and best of all - payment by
fact of sale and with the right to return unsold copies.

Logistician model

Sometimes, due to the characteristics of some markets, as well as the scale and age of the company, the tasks of finding suppliers and finding the lowest prices are not the main ones for the department
procurement All suppliers are known, the conditions are agreed upon and are not subject to major changes. In such a situation, the main task of the purchasing manager becomes optimization, i.e., ensuring the receipt of resources in accordance with the “Seven H” logistics rule.

Before introducing a system of motivation for purchasing managers, the company must develop a clear purchasing policy. Depending on the purchasing model preferred for implementing this policy (“expert”, “performer”, etc.), it is necessary to select personnel, create a system for their control and use indicators of the motivation system.

The main goal of a purchasing manager consists of providing the company’s production or trading process with resources (goods and services).

To achieve this goal, the purchasing manager performs the following functions:

• Ensures the availability of goods in optimal quantities and assortment.
• Provides planned indicators for turnover of product groups.
• Places orders for suppliers.
• Monitors order fulfillment.
• Regularly monitors availability and sales of high-demand products in order to prevent shortages.
• Studying new offers from suppliers and market conditions.
• Summarizes and communicates received information to management.

Timely informs company departments about new offers and receipts of goods, ensures the availability of the necessary information about goods in the company’s information and accounting system.

Depending on the tasks performed, areas of professional knowledge and skills are determined.

The purchasing manager must know:

• methods of managing financial flows in logistics;
• all components of the supply contract;
• factors taken into account when choosing a supplier and carrier;
• ways to improve the efficiency of procurement management using information technology;
• the use of electronic data interchange when interacting with suppliers;
• procurement methods;
• operations that make up the “Purchase” business process;
• functions performed by various intermediaries in the order fulfillment process;
• procedure for drawing up a contract;
• sanctions applied in case of failure to comply with the terms of the contract;
• ethics of business communication.

A purchasing manager must be able to:

• reasonably choose the best delivery conditions;
• correctly complete the necessary documents;
• establish interaction between the purchasing department and other departments;
• evaluate and select a supplier;
• receive and analyze information about the range of goods offered by suppliers;
• review the supplier market;
• analyze the reliability of the supplier;
• analyze delivery terms offered by suppliers;
• negotiate with suppliers (in terms of determining prices, delivery conditions, etc.);
• compare offers received from different suppliers;
• analyze and draw up contracts;
• build strong business relationships with suppliers that strengthen the image and reputation of your company;
• fulfill all agreements with suppliers in a timely manner and do not leave any issue unresolved;
• take measures to repay debts in settlements with suppliers.

To successfully perform professional duties, it is important for a buyer to have an analytical mind, systematic thinking, to be attentive, able to act effectively in stressful situations, to control his activities, to be able to plan and prioritize, to have a large active vocabulary and to be able to clearly convey his thoughts to people with different backgrounds. level of education.

A special place is occupied by communication skills such as persuasion, negotiation, mastery of basic communication techniques, the ability to compromise (with suppliers and other departments of the company), activity, perseverance, the ability to achieve one’s goal, responsibility and decency, stress resistance, endurance and patience in conflict situations.

A purchasing manager works with large amounts of information. This is information about suppliers, the order of delivery, transportation and payment. The analytical activity of the purchasing manager consists of comparing price, quality, delivery time and selecting the optimal option; in product market analysis. At the same time, a special place is occupied by the process of decision-making in a short time.

A purchasing manager works in an office. Basically, his activities are carried out using such means as telephone, fax, Internet, computer (working with professional programs, databases, Internet; writing reports, etc.).

Difficult for most professionals in the field of purchasing logistics are conflicts with the sales department (production department), problems of interaction with difficult suppliers (for example, with monopolists in the market).

The areas of advanced training for a purchasing manager are: improving professional communication methods; training in negotiation skills; mastering the skills of planning a working day and organizing the procurement process; development of teamwork; improving knowledge in the field of production, studying the types and types of products, customer demand and sales technologies, legal aspects of purchasing activities.

Evaluation and motivation of the purchasing manager

An important aspect of organizing the work of a purchasing manager is the development and implementation of a system for motivating his work. During development, the company determines which indicators will influence the salaries of purchasing managers, establishes quantitative indicators and mechanisms for calculating wages based on accepted indicators. After this, the company must communicate its wage policy to buyers and put in place an incentive system.

The buyer's motivation should stem from his functional responsibilities and powers. The motivation system for a purchasing manager is usually based on the following indicators:

• implementation of the procurement plan;
• dynamics of the price level for purchased goods;
• turnover of purchased goods;
• percentage of fulfillment of orders for the purchase of goods.

Depending on the specifics of the business, the following indicators can be added to those listed above: the percentage of defects in supplied products, the percentage of incompletely fulfilled requests for resources, the percentage of complaints, etc.

All indicators of the buyer’s motivation system must be related to those results of procurement activities that he can really influence (i.e., which depend specifically on his work).

In addition, these indicators must be important for a particular enterprise (for example, a decrease in the receipt of defects, an increase in inventory turnover). As practice shows, the salary of a purchasing manager is at least 50% of the total remuneration. The bonus portion is calculated based on pre-established performance evaluation indicators.
The table below shows the assessment indicators for the purchasing manager of a retail trading company (44 - Buzukova E. Purchasing and suppliers. Course of assortment management in retail. P. 218–219).

An important indicator for evaluating a purchasing manager is his compliance with professional ethical standards.

Professional ethics of buyers includes such aspects of relationships with suppliers as:

• respecting the interests of your company;
• confidentiality of information;
• fair competition;
• attitude towards business gifts from suppliers.

The following opinions exist regarding the permissibility of gifts from suppliers:

1. Buyers are not allowed to accept gifts; gifts received must be returned.
2. Buyers can keep promotional gifts, such as pens, calendars, notepads, etc.
3. Buyers must decide for themselves whether the gift is a sign of attention, goodwill, or an attempt at commercial bribery.

With any of the chosen options, it is advisable for the company to hold conversations with buyers, during which you remind them of the existence of ethical standards in the company and explain the need to comply with them.

To illustrate the importance of the ethical side of purchasing logistics, here are the standards for purchasing activities formulated by the Institute of Supply Management (USA) (Lysons K., Gillingham M. Purchasing and Supply Chain Management. P. 797):

1. First of all, respect the interests of your company.
2. Be open to advice and consultation from colleagues.
3. Make purchases with your company's interests in mind and every dollar spent wisely.
4. Actively acquire knowledge of purchased materials and production processes.
5. Work honestly and openly, rejecting any form of bribery.
   Demonstrate a friendly attitude towards everyone who deserves it.
6. Respect and demand respect from others for your responsibilities.
7. Avoid conflicts.
8. Help and advise colleagues as the need arises.
9. Collaborate with all organizations and specific people who are designed to improve the status of this profession.

Information support for the purchasing department

To manage purchasing logistics, an enterprise must have information systems for managing its performance indicators. They must provide the ability to thoroughly analyze and monitor the execution of the Purchasing business process.

Significant assistance in analyzing the process of supplying a company with resources and generating orders to suppliers can be obtained using the right software. In this case, it is necessary to pay attention to the program’s ability to generate analytical reports. Each enterprise, using a computer information system, generates its own set of procurement reports based on the goals and objectives formulated by top management.

As practice shows, reports and indicators are common that reflect the following aspects of procurement activities:

1. Market purchasing conditions:
   • changes in prices for purchased goods;
   • changes in the supply-demand ratio in the market;
   • forecasts of market dynamics for purchased goods.
2. Inventory cost analysis:
   • investment in inventory;
   • daily (ten-day, monthly) deliveries and ordered volume of supplies for main product groups;
   • turnover by groups of purchased goods;
   • analysis of discounts received;
   • analysis of excess reserves.
3. Efficiency of procurement operations:
   • analysis of the quality of purchased goods;
   • share of deliveries completed on time;
   • analysis of cases of lack of necessary goods in the warehouse;
   • number of changes made to orders;
   • delivery time of purchased goods;
   • labor productivity of purchasing department employees;
   • price changes resulting from negotiations, analytical work, improved packaging, rationalization of transportation, etc.;
   • transport costs.
4. Supplier reliability:
   • share of late deliveries and delivery refusals;
   • losses from lost sales;
   • share of incomplete deliveries;
   • quality of transport services provided by suppliers and carriers.

The above indicators for monitoring and evaluating purchasing logistics are a necessary part of information support for supply chain management.

The analytical capabilities of information and computer systems should give purchasing managers a complete and clear picture of all indicators related to purchasing activities. Thus, minimum inventory standards are used to control inventory levels and are the basis for generating automatic orders to suppliers. When using automatic orders, the purchasing manager spends time only on adjusting the generated orders, which significantly reduces time costs, since he does not need to view remaining goods.

With the help of procurement logistics process software, a systematic analysis of market conditions and the work of goods suppliers is carried out. This provides the purchasing company with complete information about the conditions for purchasing the necessary goods and makes it possible to make optimal purchasing decisions.

Computer systems must provide the ability to predict likely shortages of goods, which can lead to disruptions in the trading process, lost sales, and, consequently, increased costs and decreased profits. Information received in advance from suppliers about possible supply disruptions allows you to prepare for them in advance and minimize possible losses.

Modern computer systems should strengthen the company's information integration with its suppliers, increase the level of cooperation between parties included in the product supply chain, and reduce transaction costs.

Most software products that automate procurement management and are usually included in a computer information system contain a “Purchasing” module, which performs the following main functions:

• Monitoring of contractual relations with suppliers and carriers. Monitoring the fulfillment of obligations to pay for supplies.
• Monitoring the implementation of the delivery schedule with forecasting the time of receipt of goods at the warehouse.
• Generation of documents necessary for acceptance of goods into the warehouse, with automatic distribution to financially responsible persons.
• Making claims to the supplier (carrier, forwarder) regarding the range, quantity and quality of supplied products.
• Automation of all operations on receipt, consumption and internal movement of material assets in warehouses.
• Accounting for all transactions using warehouse cards filled out automatically based on primary documents.
• Accounting for material assets in various units of measurement.
• Conducting warehouse operations in accordance with current accounting rules.
• Maintaining a list of financially responsible persons with assignment to warehouses and groups of material assets.
• Accounting for inventory acts and generating an inventory list.
• Complete operational information about the quantity, quality, expiration date, storage address, supplier and carrier (forwarder) of each item of purchased product at any time.
• Providing information on excess and shortage stocks.

Computer information systems ensure the storage and use of information about existing contracts with suppliers, in accordance with which orders are placed, the product classification of purchased brands, and the register of suppliers.

To form a base of goods suppliers, a necessary condition is constant monitoring of their performance indicators. The company's information system must allow for the history of each supplier and data reflecting the dynamics of performance indicators. This database accumulates information about potential suppliers to implement the selection procedure and switch to working with another supplier.

In addition to the name of each supplier, the supplier database should contain:

• contact details of specific employees of the supplier company;
• Bank details;
• working conditions, discounts, bonuses and other agreements, with the history of their development;
• price lists according to which purchases were made;
• the history of all orders from the supplier with any returns, defects, delays and short deliveries;
• current and maximum trade credits, payment terms;
• names of supplied goods;
• price or price range depending on discounts provided for volume of purchases, payment terms, etc.;
• packaging or other data important for the transport of goods.

Once a purchase order has been sent to a supplier, the purchasing manager must be able to monitor its progress through the information system. At the same time, all deviations in the fulfillment of obligations by suppliers are recorded so that the manager can assess the quality of their work. After the enterprise receives the ordered goods, new information is entered into the purchasing department information system. This operation includes maintaining a document database:

• an order log, which keeps track of all orders by number and displays the status of each order (completed, partially completed, not completed);
• a purchase order register containing copies of all purchase orders;
• a commodity register showing all purchases of each product (date, supplier, quantity, price, purchase order number);
• a supplier register displaying all purchases made from him.

An equally important aspect of information support for purchasing logistics is the management of internal information flows circulating between departments of the enterprise.

As an example, the table below shows the information flows that exist between the purchasing department and the warehouse (receiving department) (Buzukova E. Purchasing and suppliers. Course of assortment management in retail. P. 386.)

Note that in trading enterprises, information exchange becomes more complicated due to the wide range of goods, their rapid updating and the complex structure of the description of each product item. In this regard, the main features of goods acceptance in trading companies are:

• presence of a large number of suppliers;
• different packaging conditions;
• loading vehicles in bulk (in boxes, without the use of mechanized unloading means) and on pallets;
• acceptance of products with recalculation not only of the number of places, but also by product units in packages;
• variety of vehicles delivering goods;
• failure to meet delivery deadlines;
• different requirements of suppliers for the procedure for receiving products, identifying defective products and the procedure for filing complaints;
• different composition of the package of documents accompanying the goods.

These features still do not allow us to create a unified technology for working with all suppliers, create a unified information space and achieve a unified document flow, which reduces the quality of procurement logistics.

Thus, an important direction is to improve the information support of purchasing logistics, which will allow companies to create integrated supply chains that minimize costs, create a unified information space and a unified document flow procedure.

Supply organization involves the creation of an infrastructure for the supply organization process and an organizational structure for supply management.

Let's look at each of these components.

Supply infrastructure includes divisions of warehouse, transport, procurement facilities. Individual enterprises may also have divisions for processing industrial waste and packaging waste.

Warehousing can be represented by a network of general plant warehouses or warehouses of individual production facilities, workshop warehouses and storage areas in large specialized areas.

In general, the structure of warehouse facilities at enterprises is determined by the industrial nature of production, the scale and size of the enterprise, the size and type of production, as well as the organization of production and management.

To perform technological functions of pre-processing materials, procuring and preparing products for industrial consumption, enterprises create a procurement facility, which is included in the organizational supply structure of the enterprise.

The basis for determining organizational supply management structures principles must be laid down that provide all the functions of managing a set of divisions. These are, first of all: low-level management, flexibility, an effective communication system, the principle of unity of command and a clear delineation of functions.

There are two main forms of organizing supply management: centralized and decentralized. How exactly supply is organized depends on the type and size of the organization. In a small organization, one employee may be responsible for all purchasing. A medium-sized organization may have a department staffed by purchasing staff, freight forwarders, warehouse workers and clerks. In a large organization, procurement may involve hundreds of people coordinating huge purchases of materials.

If an organization approaches the procurement process from a decentralized position, then departmental employees will independently carry out procurement, each for their own department.

Advantages this approach: 1) the user knows the department’s needs better than anyone else; 2) the ability to more quickly satisfy the need for material resources.

Flaws decentralized procurement: 1) while solving operational issues, employees may not notice trends in changes in the planning of the organization as a whole; 2) insufficient professionalism of employees and problems in determining supply opportunities; 3) no department can be large enough to conduct functional analysis in areas such as customs, transport services, warehousing, inventory management, purchasing analysis, etc.

To implement centralized procurement Usually one supply department is organized (Fig. 2.10), concentrating all supply functions of the organization, which allows obtaining certain benefits:

consolidation of all purchases of similar or similar materials, which makes it possible to receive discounts for large orders;

coordinating related activities to reduce transportation, storage and maintenance costs;

eliminating duplication of operations and unnecessary procedures;

having a single point of contact with suppliers and providing them with the necessary information and services;

obtaining specialized qualifications and improving supply operations;

the ability to concentrate other employees on their own functions so that they are not distracted by procurement;

concentration of responsibility for supply, which facilitates management control.

Chief executive officer

Purchase department

Director of Division A

( computer production)